HLL (Hindustan Unilever Limited) is India's largest FMCG company. In the 1980s, HLL launched an extensive rural marketing campaign called "Project Sting" to expand its Wheel detergent brand in rural India. This included advertising through local performances, traveling cinema vans, and stickers on rural resources. HLL also set up a rural distribution network of outlets, distributors, and sub-stockists to transport products through remote villages using local means. By launching Wheel at a lower price and creating this business model, HLL was able to gain a large rural customer base and experience significant revenue and profit growth between 1995-2000.
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HLL and Project Sting ...
HLL (Hindustan Unilever Limited) is India's largest FMCG company. In the 1980s, HLL launched an extensive rural marketing campaign called "Project Sting" to expand its Wheel detergent brand in rural India. This included advertising through local performances, traveling cinema vans, and stickers on rural resources. HLL also set up a rural distribution network of outlets, distributors, and sub-stockists to transport products through remote villages using local means. By launching Wheel at a lower price and creating this business model, HLL was able to gain a large rural customer base and experience significant revenue and profit growth between 1995-2000.
• HLL came into being in 1956 through a merger of Lever brothers, Hindustan Vanaspati Mfg. Co. Ltd. And United Traders Ltd. • Headquarter in Mumbai. • In june 2007 the company was renamed as Hindustan Unilever Limited. Brands Of HUL • Lifebuoy • LUX • Surf Excel • Rin • Wheel • Fair & Lovely • Pepsodent and many more Launching Wheel
• In 1985 New Advertisement campaign
Launched • They advertise their product throughout rural India presenting their message through colourful flyers, posters on shops front. • Street performances with local magicians, dancers and singers. Cont... • Travelling cinema vans • And at every local place where cconsumers were present. • For the first time in advertising all the water resources in rural India such as wells , hand pumps and trees around ponds were being advertised through stickers. • Scanned the hands of villagers using ultraviolet light sensors. Rural Distribution Network Two major challenges • The lack of rural infrastructure • The problem of transporting products to remote villages. Distribution Network
• HUL outlets were set up in villages that had good
roads and population more than 2000. • For the villages having population below 2000 HUL launched project Streamline –Rural distributor –Rural Distributor supply about 15-20 rural sub stockist. –Sub stockist supply products for resale into the villages. • Transportation by any means available at hand. • Project streamline extended direct reach of HLL from 25 to 37 %. Creating New Customers • HLL done market testing in 1987 and launched Wheel In 1988. • Initially Wheel sold at ` 5.50 only 0.25 paise higher than Nirma. • One year later Wheel was the second largest brand in India. • Through this business model HLL was able to gain 20% annual growth in revenues per year and 25% growth in profit b/w 1995 to 2000. Conclusion • Because of this business model HLL gained its much respected position as trend setter. • Unilever applied this model into other international rural markets such as Brazil, Indonesia and Philippines. • Unilever moved to making smaller quantity products to encourage rural people to continue purchasing and came out from the Asian economic crisis strongly. Thank you...